Silver Breaks Through $61 Amid Easing Tensions and Shifting Fed Bets

Silver prices broke through the $61 mark on Wednesday, climbing as much as 3.8 percent to $61.52 due to easing geopolitical tensions in the Middle East and a shift in US monetary policy expectations.

The physical market has been in deficit for six consecutive years, with global stockpiles being steadily drawn down since 2021. Industry forecasts indicate production growth of only around 1.5 percent in 2026, leaving a persistent gap between supply and demand.

The robust industrial bid for silver, driven by growing demand from electric vehicles and AI hardware, is providing a buffer against short-term price swings. The gold-silver ratio has dropped to 67.64, indicating silver is gaining ground relative to gold.